Sean Bradley - Morning Sun
Alma College has settled a lawsuit regarding the Opera Block building at 101-113 Superior St. where it will take ownership of the property effective immediately and will pay contractors and settle all debt issues related to the project. All lawsuits are now dismissed as well.

Alma College is now the owner of the Wright Opera Block development in the city’s downtown.

An agreement has been reached between the college, original developer Kurt Wassenaar, local contractors and a finance organization after a lawsuit was filed by the college seeking payment from Wassenaar of a $1 million loan issued in 2013 and renewed in 2015 that had yet to be repaid to the college and several lenders and contractors.

The college takes ownership of the property effective immediately; it will pay local contractors 100 percent of amounts claimed for the work previously performed including secured interest; it will settle the debt owed to the finance organization, Develop Michigan, by Wassenaar and all lawsuits involving the property are now dismissed, according to a news release.

The dollar figures for the amounts to be paid to the local contractors and settled debt are undisclosed as part of a confidentiality agreement, according to Michael Silverthorn, Alma College Associate Vice President for Communications

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“I am extremely pleased to announce that we have reached this agreement,” said Alma College President Jeff Abernathy.

The development plan remains the same since the project started, which is to develop the ground level as retail space and the second and third floors as student apartment housing, according to Abernathy.

“The Opera House is key to the college’s strategic goals of driving investment in the downtown, leveraging college resources for the benefit of the college and community alike, and helping both thrive,” Abernathy said. “I envision a renovated, vibrant Opera House in our downtown sparking the local economy.”

In September, the Alma Opera Block LLC — a corporation formed and 100 percent owned by Alma College — was awarded a $1.5 million grant from the Michigan Economic Development Corporation in support of the Wright Opera Block redevelopment. The performance-based grant doesn’t pay until the project on the property is completed.

“We appreciate the cooperation of Develop Michigan, the secured contractors, the MEDC and all the parties involved in working together to come to this agreement for resolving the Opera House redevelopment,” Abernathy said. “We also are grateful for the ongoing cooperation of the City of Alma and Greater Gratiot Development and their support for a resolution.”

The next steps for the college are to preserve and stabilize the Opera House renovations achieved to date. Construction will resume after Alma College determines a financial path to complete the project.

“Now that the college has an agreement to take ownership of the property, we’re diligently working on a funding plan for completion of the project,” Silverthorn said.

The total amount of funding has not yet been determined.

In addition, no timetable has yet been established for completion of the project.

“The redevelopment of the Opera House block is a transformative project for the downtown,” said Aeric Ripley, director of the Alma Downtown Development Authority. “Once completed, it will spur on additional downtown development.”

In addition to the retail space and apartments for approximately 50 students, the upper levels of the Opera House will include several common areas plus teaching and conference room space.

“Through this entire process, the college and community have shared a vision for a revitalized Opera House as the centerpiece of the downtown district,” said James Wheeler, president of Greater Gratiot Development. “They are to be commended for a never-wavering commitment to this project.”

While the project has encountered many difficulties, Abernathy noted his gratitude to Wassenaar.

“But for Kurt’s willingness to step in and purchase the property seven years ago, we would most likely have a parking lot in the middle of the historic downtown,” he said. “I am grateful for his efforts and the efforts of so many who will help us to finish the building and make it the spark for downtown development for the 21st century as it was for the 20th.”

The 55,000-square foot Alma Opera House, originally constructed in 1879 by lumber baron Ammi Wright, stands on the corner of Superior and State streets. Ammi Wright played a significant role in both the founding of Alma College in 1886 and the early development of the town of Alma.